Street Calls of the Week
Investing.com - Craig-Hallum has initiated coverage on Kopin Corp (NASDAQ:KOPN) with a Buy rating and a price target of $6.00, citing significant growth potential in defense industry opportunities. The stock, which has delivered an impressive 358% return over the past year, is currently trading near its 52-week high of $4.11. According to InvestingPro analysis, Kopin appears to be trading above its Fair Value.
The research firm believes Kopin can grow from its current revenue base of $47 million, which saw 13% growth in the last twelve months, to more than $200 million annually, driven by an expanding defense portfolio. The company’s existing defense program wins could alone drive annual revenue to $75-$100 million. InvestingPro data reveals 14 additional key insights about Kopin’s financial health and market position.
These defense programs include advanced weapons sights, helmet displays for F-35 pilots, displays for the Stinger missile program, and upgraded displays in the M1a2 Abrams tank. Craig-Hallum indicates Kopin could approach the lower end of the $75-$100 million revenue range as early as 2027. With a current market capitalization of $607 million, analysts have set price targets ranging from $3 to $5.50 for the stock.
The U.S. Army’s Soldier Borne Mission Command (SBMC) program represents a significant growth opportunity for Kopin. The company has already secured a $15.4 million contract to accelerate development of a full-color MicroLED display for this program.
Kopin is working with the U.S. Army to become a potential production supplier for the SBMC program, with further clarity expected in mid-to-late 2026. The program could represent a $350-$500 million revenue opportunity over multiple years, with production of 80-120 thousand headsets potentially ramping up significantly in 2027.
In other recent news, Kopin Corporation has announced a $3 million order for its MicroLED displays from a tier one aerospace company, marking its first production contract for this technology in combat aircraft. The displays, which will upgrade legacy Heads-Up Displays in fielded aircraft, are scheduled for delivery in the second half of 2026. Additionally, Kopin has secured approximately $41 million in private investment financing from strategic partners Theon International, Ondas Holdings, and Unusual Machines. The investment involves issuing 19,545,950 shares of common stock at $2.10 per share, with the transaction expected to close pending customary conditions.
Analyst activity surrounding Kopin includes Stifel resuming coverage with a Buy rating, citing the company’s role as a preferred microdisplay technology supplier to the Department of Defense. This comes amid increased budget resources supporting domestic suppliers. Moreover, Canaccord Genuity has raised its price target for Kopin to $3.00 from $2.50, maintaining a Buy rating. The firm noted improved growth and margin prospects following the recent investment from Theon International, which has also strengthened Kopin’s balance sheet.
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